RIAC and ECSSR Policy Brief # 48 / 2023
The world is currently undergoing a period of high turbulence in the political, economic, and climate spheres. Caused by numerous factors, including those directly affecting the interests of Russia and the United Arab Emirates (UAE), the prospects for developing cooperation between the two countries in various fields, particularly, in the energy sector, has been significantly impacted.
What forms the wide scope of common interests between Russia and the UAE are their similar state views on the need to revise the unipolar system of international relations, understanding the importance of maintaining a balanced global energy (oil) market, the desire to develop mutually beneficial bilateral cooperation in both traditional and “new” relations, seeking low-carbon energy, and achieving sustainable development goals.
Generally, Russia-UAE participation in international organizations and agreements, such as the Paris Agreement, OPEC+, and several others, are based on fairly well-developed mechanisms of bilateral cooperation and mutual interests.
The development of mutually beneficial economic cooperation between the two countries has been rather impressive. By 2022 trade turnover between Russia and the UAE increased by 68% to $9 billion. Out of all the countries in the Arab world, the UAE holds first place in this indicator.
Since February 2022, the degree of rapprochement between Moscow and Abu Dhabi has been repeatedly demonstrated at both diplomatic and economic levels. The UAE abstained from voting on a UN resolution condemning Russia for conducting a special military operation in Ukraine. Abu Dhabi also ignores Washington’s anti-Russian sanctions. In response, the U.S. Department of the Treasury openly criticized the UAE and imposed sanctions on several Emirati organizations. Recently, personal contacts between UAE and Russian leaders have become more frequent, particularly by expressing mutual support during crisis situations. The UAE has demonstrated its commitment to using different platforms to expand cooperation with Russia, particularly by discussing the possibilities of its participation in the EAEU.
Restrictive sanctions imposed on Russia by the United States, EU, and allies, as well as the unofficial “self-imposed sanctions” by Western companies and financial institutions force Russian companies, including those in energy, to consider the possibility of transferring their foreign representative offices to the UAE. This is facilitated by a favorable tax climate in the country, the availability of a developed infrastructure, and a system of services. Trading in shares of Russian energy companies is also moving to UAE trading platforms.
The UAE and Russia are working to achieve a common goal; to maintain the stability of the global oil market, through group coordination within OPEC+. The two countries also aim to make progress in strategies that envisage a more balanced energy mix in the future, with greater contributions from clean and renewable energy sources. Closer cooperation between the UAE and Russia in these two key areas would have positive impacts for the global economy and the environment.
RIAC and ECSSR Policy Brief # 48 / 2023
The world is currently undergoing a period of high turbulence in the political, economic, and climate spheres. Caused by numerous factors, including those directly affecting the interests of Russia and the United Arab Emirates (UAE), the prospects for developing cooperation between the two countries in various fields, particularly, in the energy sector, has been significantly impacted.
What forms the wide scope of common interests between Russia and the UAE are their similar state views on the need to revise the unipolar system of international relations, understanding the importance of maintaining a balanced global energy (oil) market, the desire to develop mutually beneficial bilateral cooperation in both traditional and “new” relations, seeking low-carbon energy, and achieving sustainable development goals.
Generally, Russia-UAE participation in international organizations and agreements, such as the Paris Agreement, OPEC+, and several others, are based on fairly well-developed mechanisms of bilateral cooperation and mutual interests.
The development of mutually beneficial economic cooperation between the two countries has been rather impressive. By 2022 trade turnover between Russia and the UAE increased by 68% to $9 billion. Out of all the countries in the Arab world, the UAE holds first place in this indicator.
Since February 2022, the degree of rapprochement between Moscow and Abu Dhabi has been repeatedly demonstrated at both diplomatic and economic levels. The UAE abstained from voting on a UN resolution condemning Russia for conducting a special military operation in Ukraine. Abu Dhabi also ignores Washington’s anti-Russian sanctions. In response, the U.S. Department of the Treasury openly criticized the UAE and imposed sanctions on several Emirati organizations. Recently, personal contacts between UAE and Russian leaders have become more frequent, particularly by expressing mutual support during crisis situations. The UAE has demonstrated its commitment to using different platforms to expand cooperation with Russia, particularly by discussing the possibilities of its participation in the EAEU.
Restrictive sanctions imposed on Russia by the United States, EU, and allies, as well as the unofficial “self-imposed sanctions” by Western companies and financial institutions force Russian companies, including those in energy, to consider the possibility of transferring their foreign representative offices to the UAE. This is facilitated by a favorable tax climate in the country, the availability of a developed infrastructure, and a system of services. Trading in shares of Russian energy companies is also moving to UAE trading platforms.
The UAE and Russia are working to achieve a common goal; to maintain the stability of the global oil market, through group coordination within OPEC+. The two countries also aim to make progress in strategies that envisage a more balanced energy mix in the future, with greater contributions from clean and renewable energy sources. Closer cooperation between the UAE and Russia in these two key areas would have positive impacts for the global economy and the environment.
Russia — UAE Cooperation in the Energy Sector, 5.6 Mb
